First Home Buyers
If you are looking to buy your first home and finding it hard to save up a 5% deposit here are some options we can explore for you :
First Home Buyers
Looking to get into the property market as a first home buyer can be overwhelming understanding the buying process and your finance options.
Our job as your mortgage broker is to make the process as easy as possible. We will hold your hand and guide you through the whole process from application all the way through to settlement.
Understanding all the lending products, features and policies around income and living expenses can be mine field for a first home buyer. Fortunately, we are experienced in all of this and can quickly and easily help choose the right home loan for you based on your savings and income.
Its important to minimise the number of inquires on your credit file as each time you make an application can have an impact on your personal credit score. We match your finance profile to which bank can look to approve your finance so you get the best chance of approval.
We will show you what you need to allow for in your savings to help contribute towards your deposit and purchase costs including govt and legals fees to get into the property. We will tailor some options for you so you can see how your savings and home loan options changes when you looking at different property price brackets.
Most major banks now also require a minimum deposit of 8% to purchase a property which could mean it takes longer for you to get into the property market using a major bank. Most major banks say they still do 95% home loans which is true however that 95% has to include the mortgage insurance premium which can be as high as 3 % for loans over $300k. This means rather than needing 5% deposit its more like 8% allowing for the extra 3% in mortgage insurance.
The great news is we do have special home loan packages designed for first home buyers which can get you into the market with just 5% deposit and costs.
Showing Good Rental History Without Genuine Savings
Some banks will just look at your rental history to get around the genuine savings policy and allow your deposit to be made up from gifted funds from family and whatever additional savings you can contribute. As a general guide we will need to show the lender 6-12 months of good rental history through either a property manager or onsite manager. Private rental arrangements cannot be used for this policy.
First Home Buyer Benefits
Stamp duty Concession – As a first home buyer in WA if you are purchasing an established property up to $500,000 there is no stamp duty applicable ! There is also discounts on stamp duty from $500,000 to $550,000. From $550,000 onwards normal stamp duty applies. There are two main rules to qualify – the property has to be lived in as your home for 12 months. You are allowed however to buy a property with an existing tenant there lease must expire no more than six months from the settlement date at which time you must take residence.
Great Start Grant or First Home Owners Grant – In WA the government is currently contributing $15,000 towards either a house and land package or a brand new apartment purchase. We assist you with this process and work with the bank to get this approved during your home loan process.
Family Equity Home Loan
This type of home loan is becoming more and more popular as the cost of living goes up and it is more difficult to get to the full 5-8% deposit to get into your first home. This type of home loan allows you to get into your property with minimal deposit however it is still recommended you at least have some savings to go towards the purchase costs.
The major benefits of this option is there is no mortgage insurance to pay which typically can save you over ten thousand dollars if you were previously looking at a 95% home loan.
Here is how it works…
The bank will only lend 80% of the value of the property you are purchasing, this is why you pay no mortgage insurance. The balance of your home loan is secured over one of your parents properties as a limited guarantee to the loan amount. This is where having a mortgage broker to go over this with you and help explain the process to your family makes a difference.
We have looked after a lot of clients in this way. If your parents own their property or only have a small mortgage is where they maybe able to assist. We are happy to take the time to talk with your family about this option if they are open to it. We have also helped clients with type of home loan even if they do have good savings to save on mortgage insurance.
If you’d like more information on how to access your first home, simply fill out the form below and we will contact you…
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